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Income Tax Appellate Tribunal, “A” BENCH, PUNE
Before: SHRI INTURI RAMA RAO & SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM:
This appeal preferred by the assessee emanates from the order of the Ld. CIT (Exemption) Pune dated 15.10.2020 passed u/s.10(23C)(vi) of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) for the assessment year 2020-21 as per the following grounds of appeal on record:
“On the facts and circumstances of the case and in law the CIT. Exemptions has erred in not granting sufficient and reasonable opportunities to present its case in as much as as per the notice of hearing dated 14.09.2020 the hearing was fixed on 18.09.2020 and as per notice of hearing dated 22.09.2020 the hearing was fixed on 24.09.2020. In view of the fact that the main object and the purpose of the society was nothing but imparting education and the society exists solely for educational purposes and not for the purposes of profit, the CIT.E was not correct in rejecting the claim of the assessee under section 10.23C wherein it is mainly engaged in providing education facilities. On the facts and circumstances of the case the CIT.E has incorrectly assumed that the income of the assessee trust for 2019.20 is very much low as compared to income for the year 2018.19 without appreciating the facts as per the records available with the Deptt. in the form of Returns of Income and copies of accounts as attachments to the Audit reports as per F.No.10B which show the correct affairs of the assessee. On the facts and circumstances of the case and in law the CIT.E has incorrectly compared the figures of FY 2018-19 and 2019-20 without appreciating the fact that the figures for FY 2018-19 represented application of funds -whereas figures for FY 2019-20 represented the net surplus after application of funds and accordingly inferred that income shown for FY 2019-20 is very low. The appellant craves leave for adding, altering, modifying or deleting any of the grounds on or before the date of hearing”
At the time of hearing, none appeared on behalf of the assessee. Though the notice was issued, there was no appearance from the side of the assessee. The submission of the Ld. DR is recorded and the case is heard on merits.
The brief facts of the case are that the assessee/applicant trust e-filed application in Form 56 for grant of exemption u/s.10(23C)(vi) of the Act for the year 2020-21 on 29.02.2020. The trust is registered with Assistant Registrar of Co-operative Societies Nanded vide Registration No. Maharashtra/155/89/Nanded dated 19.09.1989 and under the Bombay Public Trust Act vie Reg. No. F-1923/Nanded dated 30.11.1989. The main object of the trust is to carry out educational activities.
In this case, the grievance of the assessee is with regard to the rejection of claim of the assessee u/s.10(23C)(vi) of the Act.
That on perusal of the order of the Ld. CIT(Exemption) dated 15.10.2020 at Para 3 onwards, it is observed that certain details/evidences were called for from the assessee to upload the same in the Department‟s portal. Thereafter, in the subsequent paragraphs, it is evident that some further opportunities were given to the assessee for filing these details before the Ld. CIT(Exemption) which were, however, not done by the assessee. The Ld. CIT(Exemption) has decided this case based on materials available on record before him and the order is an ex-parte order. It is also observed that the assessee trust has e-filed application in Form 56 for grant of exemption u/s.10(23C)(vi) of the Act for the year 2020-21 on 29.02.2020. Thereafter, whatever notices were issued to the assessee asking them to furnish all the requisite details/evidences, that was the time when pandemic was at its peak. That various offices were closed and there was no communication with people whatsoever and the entire working atmosphere was brought to a standstill. In such scenario, it was quite possible that the assessee was unable to furnish the details called for by the Ld. CIT(Exemption) and uploaded the same in the Department‟s portal. This non-compliance is definitely not deliberate or intentional rather possibly due to prevailing circumstances.
5.1 It is well known principle recognized by the Higher Judicial Forums and even by the Tribunal that Income Tax Legislation is a part and parcel of welfare legislation where the interest of the tax payers needs to be protected. Therefore, we are of the considered view that one more opportunity should be given to the assessee to furnish requisite details/evidences before the Ld. CIT(Exemption) so that the case may be represented on merits and thereafter, the Ld. CIT(Exemption) shall adjudicate the matter while complying with the principles of natural justice. In view thereof, we set aside the order of the Ld. CIT(Exemption) and restore the matter back to his file as directed hereinabove.
In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 08th day of January, 2021.
Sd/- Sd/- INTURI RAMA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 08th January, 2021 SB आदेश की प्रनिलऱपप अग्रेपषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2.